Ford shows it's possible to be a successful American car maker

With all the problems with the economy and constant news of floundering US companies that require government bailouts, it's nice to hear of a good story like Ford Motor Co. (Ford) and its recent $4 billion debt repayment. If you don't recall, Ford is the only American car maker that didn't take government cash to stay afloat. Instead, it incurred massive debt. Its apparently sage financial strategy, coupled with a strong lineup of cars and vehicles, is proving that at least Ford knows how to run a modern car company based out of the US.

According to a press release from the company, Ford is paying $4 billion back in debts owed (in cash) on top of $3 billion it paid in April -- a total reduction in debt of $7 billion for this quarter alone. Now, Ford still has plenty of debt. A Detroit News article today points out that even with these payments the company still has obligations to pay back an additional $27 billion. But the good news is that by knocking down its debt this quarter, the company expects to save around $470 million in annual interest payments. Not bad at all.

Things are pretty good at Ford these days despite their debt. The company reported its May sales of US cars and trucks (Ford, Lincoln, and Mercury brands; it is selling off its Volvo car unit) was up 23% from sales in the same month last year. In case you were wondering, that translates to over 192, 000 new Ford vehicles on the road. How about the books? According to its first quarter financials (from late April), profit was around $2 billion (pre-tax) on revenues of just over $28 billion. Again, not bad at all. 

While Ford has a long way to go in gaining traction against foreign brands, the recent problems at Toyota certainly help. With a strong lineup that includes hybrid and all-wheel drive (AWD) vehicles as well as flashy models like the updated Mustang, the company looks poised for more success. And that's great to hear. Along with companies like Apple, Ford is one of the few shining examples of American businesses that are growing as a result of good products, marketing, and efficient operations -- and without the need for federal funding.